Nov. 29, 2006 -- On November 21, 2006, Liberty Diversified Holdings, Inc., MCR Printing and Packaging Corp. and Mario Ramirez executed a Rescission of Stock Purchase Agreement with regards to their Stock Purchase Agreement dated December 31, 2005. In a letter to the Company dated November 20, 2006, Mr. Ramirez informed the Company that he intended to exercise the rights of rescission provided in the original Stock Purchase Agreement.
The Company agreed to terminate the Stock Purchase Agreement immediately because its Board of Directors believes it to be in the best interests of the Company to focus its resources on other acquisitions and other opportunities outside the printing and manufacturing arenas. The decision to terminate was mutual and amicable among the parties, and the Stock Purchase Agreement was fully terminated and rescinded on November 21, 2006.
In related activities on November 21, 2006 the Company sold 100% of its wholly-owned subsidiary Packaging City, Inc. to Mario Ramirez for $5,000 and 100% of its wholly-owned subsidiary Innovative Packaging Technologies, Inc. (IPTI) to Mario Ramirez for $100. Packaging City, Inc. was formed in September 2006 to provide marketing and support services for MCR Printing and Packaging Corp. and has no reported revenues. IPTI was acquired in September 2006 to provide new technologies for MCR Printing and Packaging Corp. and has no reported revenues.
Also effective November 21, 2006, Mario Ramirez has also resigned from all of his positions with the Company, which included Member of the Board of Directors, Co-Chairman of the Board of Directors, Secretary and VP of Manufacturing Acquisitions & Subsidiaries.
Ron Touchard, Chairman and CEO of Liberty Diversified Holdings, Inc., commented, "We believe that the termination of the Stock Purchase Agreement between Liberty and MCR Printing and Packaging Corp. is in the best interest of all parties. By moving away from the traditional printing and packaging industries, Liberty will now be able to more aggressively pursue acquisitions and opportunities in market segments that provide much faster growth. We are very excited about Liberty's future and anticipate making additional major announcements very soon. We also believe that MCR Printing and Packaging, Inc. remains a viable concept and we wish Mr. Ramirez and MCR great success."